SanDisk is in advanced talks to sell itself to Western Digital and the two storage makers could reach a deal as soon as this week, people with knowledge of the matter said.

While no agreement has been signed and talks could still fall apart, negotiations accelerated over the weekend, said the people, who asked not to be identified because the information is private.

SanDisk has spoken with both Western Digital and Micron Technology about a deal, people familiar with the matter said last week. The company plans to report earnings Tuesday after the market closes.

A representative for SanDisk didn”t immediately respond to requests for comment. Spokesmen for Western Digital and Micron declined to comment.

SanDisk, based in Milpitas rose as much as 13 percent in extended trading. At the close in New York Monday, the company had a market capitalization of about $14.7 billion, after climbing more than 16 percent since Bloomberg reported it was exploring a sale Oct. 13.

It”s one of the largest makers of flash memory, a type of chip that”s used as storage in mobile devices and increasingly in computers and data centers. Last month Western Digital got a $3.8 billion investment from China”s Tsinghua University, adding to its funds available to make deals.

This year to date has been the biggest ever for semiconductor mergers and acquisitions. Companies in the $300 billion industry are facing rising costs and a shrinking customer base, encouraging them to get together to add scale.

SanDisk is in advanced talks to sell itself to Western Digital and the two storage makers could reach a deal as soon as this week, people with knowledge of the matter said.

While no agreement has been signed and talks could still fall apart, negotiations accelerated over the weekend, said the people, who asked not to be identified because the information is private.

SanDisk has spoken with both Western Digital and Micron Technology about a deal, people familiar with the matter said last week. The company plans to report earnings Tuesday after the market closes.

A representative for SanDisk didn”t immediately respond to requests for comment. Spokesmen for Western Digital and Micron declined to comment.

SanDisk, based in Milpitas rose as much as 13 percent in extended trading. At the close in New York Monday, the company had a market capitalization of about $14.7 billion, after climbing more than 16 percent since Bloomberg reported it was exploring a sale Oct. 13.

It”s one of the largest makers of flash memory, a type of chip that”s used as storage in mobile devices and increasingly in computers and data centers. Last month Western Digital got a $3.8 billion investment from China”s Tsinghua University, adding to its funds available to make deals.

This year to date has been the biggest ever for semiconductor mergers and acquisitions. Companies in the $300 billion industry are facing rising costs and a shrinking customer base, encouraging them to get together to add scale.